China Yongda cancels HK$3.37b IPO

China Yongda pulled the plug yesterday on its planned initial public offering (IPO) after orders for the mainland car dealer's shares fell through amid market fluctuations last week.

Graff Diamonds, meanwhile, appeared to have had a good response to its global offering, a person familiar with the deal said, although fund managers reported a lukewarm response from the public.

China Yongda - the second-largest trader of luxury marques such as Audi and BMW in the eastern provinces - sought to raise HK$3.37 billion for expansion. Initially, it had the global portion of its offering spoken for, but a person close to the deal said some investors withdrew at the last minute, forcing the firm to extend its offering period until yesterday.

Poor market conditions have not daunted London jeweller Graff's listing plans, though, and it began its offering yesterday. Market players said the global part of its offering is well covered - backed by some 'quality names' - but fund managers said it has not drawn the same attention from retail investors.

'There were a few inquiries today, but we don't see a very enthusiastic response,' said Ng Ka-wai, a broker at Christfund Securities. 'While retail stocks kind of provide asylum in a grim market situation like now, investors are still rather cautious in subscribing for new shares.'

Alex Wong Kwok-ying, asset management director of the Ample Capital Group, said that he would rather buy the stock later than subscribe now.